Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Mar. 02, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q/A | |
Amendment Flag | true | |
Amendment Description | Amendment No. 1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-52690 | |
Entity Registrant Name | PETROLIA ENERGY CORPORATION | |
Entity Central Index Key | 0001368637 | |
Entity Tax Identification Number | 86-1061005 | |
Entity Incorporation, State or Country Code | TX | |
Entity Address, Address Line One | 710 N. Post Oak Road | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77024 | |
City Area Code | 832 | |
Local Phone Number | 723-1266 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 176,988,322 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 1,054,109 | $ 14,058 |
Accounts receivable | 338 | 5,942 |
Other current assets | 6,397 | 5,641 |
Total current assets | 1,060,844 | 25,641 |
Oil and gas, on the basis of full cost accounting | ||
Evaluated properties | 6,756,794 | 6,797,025 |
Furniture, equipment & software | 155,293 | 155,293 |
Less accumulated depreciation and depletion | (708,580) | (603,135) |
Net property and equipment | 6,203,507 | 6,349,183 |
Other assets | ||
Operating lease right-of-use asset | 7,454 | 12,821 |
Other assets | 1,386,980 | 1,450,841 |
Total Assets | 8,658,785 | 7,838,486 |
Current liabilities | ||
Accounts payable | 1,732,868 | 320,088 |
Accounts payable – related parties | 5,478 | 57,363 |
Operating lease liability – current | 7,998 | 13,909 |
Accrued liabilities | 1,420,609 | 1,149,012 |
Accrued liabilities – related parties | 868,662 | 862,158 |
Notes payable, current portion | 3,328,364 | 3,438,162 |
Notes payable – related parties, current portion | 774,560 | 779,373 |
Total current liabilities | 8,138,539 | 6,620,065 |
Asset retirement obligations | 2,322,812 | 2,257,027 |
Derivative liability | 5,215 | 22,554 |
Total Liabilities | 10,466,566 | 8,899,646 |
Stockholders’ Deficit | ||
Common stock, $0.001 par value; 400,000,000 shares authorized; 176,988,322 and 176,988,322 shares issued and outstanding | 176,988 | 176,988 |
Additional paid in capital | 60,242,888 | 60,216,722 |
Accumulated other comprehensive income | (302,057) | (269,155) |
Accumulated deficit | (62,079,296) | (61,339,161) |
Total Stockholders’ Deficit | (1,807,781) | (1,061,160) |
Total Liabilities and Stockholders’ Deficit | 8,658,785 | 7,838,486 |
Series A Preferred Stock [Member] | ||
Stockholders’ Deficit | ||
Preferred stock, value | 199 | 199 |
Series B Preferred Stock [Member] | ||
Stockholders’ Deficit | ||
Preferred stock, value | 152,397 | 152,397 |
Series C Preferred Stock [Member] | ||
Stockholders’ Deficit | ||
Preferred stock, value | $ 1,100 | $ 850 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 176,988,322 | 176,988,322 |
Common stock, shares outstanding | 176,988,322 | 176,988,322 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 199,100 | 199,100 |
Preferred stock, shares outstanding | 199,100 | 199,100 |
Series B Preferred Stock [Member] | ||
Preferred stock, shares authorized | 3 | 3 |
Preferred stock, shares issued | 3 | 0 |
Preferred stock, shares outstanding | 3 | 0 |
Preferred stock, no par value | $ 0 | $ 0 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 11,000 | 11,000 |
Preferred stock, shares issued | 11,000 | 8,500 |
Preferred stock, shares outstanding | 11,000 | 8,500 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Oil and gas sales | ||||
Total Revenue | $ 1,137,890 | $ 1,248,359 | $ 2,974,250 | $ 2,330,607 |
Operating expenses | ||||
Lease operating expense | 1,622,399 | 1,613,076 | 2,898,236 | 2,148,469 |
Production tax | 438 | 1,163 | ||
General and administrative expenses | 149,757 | 190,942 | 297,603 | 521,956 |
Depreciation, depletion and amortization | 60,682 | 253,285 | 113,198 | 436,424 |
Asset retirement obligation accretion | 43,420 | 93,518 | 85,898 | 181,724 |
Total operating expenses | 1,876,258 | 2,150,821 | 3,395,373 | 3,289,736 |
Loss from operations | (738,368) | (902,462) | (421,123) | (959,129) |
Other income (expenses) | ||||
Interest expense | (123,080) | (171,902) | (248,017) | (329,950) |
Other income (expense) | 5,521 | |||
Change in fair value of derivative liabilities | (146) | 83,111 | 17,339 | (104,605) |
Total other income (expenses) | (123,226) | (88,791) | (225,157) | (434,555) |
Net loss before taxes | (861,594) | (991,253) | (646,280) | (1,393,684) |
Series A Preferred Dividends | (44,798) | (44,893) | (89,595) | (89,568) |
Series C Preferred Dividends | (2,194) | (4,260) | ||
Net Loss Attributable to Common Stockholders | $ (908,586) | $ (1,036,146) | $ (740,135) | $ (1,483,252) |
Loss per share | ||||
(Basic and fully diluted) | $ (0.01) | $ (0.01) | $ 0 | $ (0.01) |
Weighted average number of common shares outstanding, basic & diluted | 176,988,322 | 176,988,322 | 176,988,322 | 173,854,195 |
Other comprehensive income, net of tax | ||||
Foreign currency translation adjustments | $ (62,759) | $ (39,732) | $ (32,902) | $ (37,405) |
Comprehensive income (loss) | $ (971,345) | $ (1,075,878) | $ (773,037) | $ (1,520,657) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($) | Preferred Stock [Member] Series A Preferred Stock [Member] | Preferred Stock [Member] Series B Preferred Stock [Member] | Preferred Stock [Member] Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Shares To Be Issued [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Beginning balance at Dec. 31, 2020 | $ 199 | $ 168,696 | $ 59,044,519 | $ (266,432) | $ (63,088,096) | $ (4,141,114) | |||
Beginning balance, shares at Dec. 31, 2020 | 199,100 | 168,696,226 | |||||||
Stock based compensation | 54,923 | 54,923 | |||||||
Series A preferred dividends | (89,568) | (89,568) | |||||||
Warrants issued as financing fee | 16,614 | 16,614 | |||||||
Other comprehensive income (loss) | (37,405) | (37,405) | |||||||
Net income (loss) | (1,393,684) | (1,393,684) | |||||||
Common shares issued for conversion of debt | $ 2,700 | 86,400 | 89,100 | ||||||
Common shares issued for conversion of debt, shares | 2,700,000 | ||||||||
Common shares issued for settlement of related party fee | $ 5,592 | 158,895 | 164,487 | ||||||
Common shares issued for settlement of related party fee, shares | 5,592,096 | ||||||||
Warrants issued for settlement of loans | 200,378 | 200,378 | |||||||
Gain on modification of related party debt | 181,791 | 181,791 | |||||||
Gain on issuance of shares for settlement of accrued related party fees | 373,556 | 373,556 | |||||||
Ending balance at Jun. 30, 2021 | $ 199 | $ 176,988 | 60,117,076 | (308,837) | (64,571,348) | (4,580,922) | |||
Ending balance, shares at Jun. 30, 2021 | 199,100 | 176,988,322 | |||||||
Beginning balance at Mar. 31, 2021 | $ 199 | $ 176,988 | 60,082,160 | (264,105) | (63,535,202) | (3,539,960) | |||
Beginning balance, shares at Mar. 31, 2021 | 199,100 | 176,988,322 | |||||||
Stock based compensation | 27,554 | 27,554 | |||||||
Series A preferred dividends | (44,893) | (44,893) | |||||||
Warrants issued as financing fee | 7,362 | 7,362 | |||||||
Other comprehensive income (loss) | (39,372) | (39,372) | |||||||
Net income (loss) | (991,253) | (991,253) | |||||||
Ending balance at Jun. 30, 2021 | $ 199 | $ 176,988 | 60,117,076 | (308,837) | (64,571,348) | (4,580,922) | |||
Ending balance, shares at Jun. 30, 2021 | 199,100 | 176,988,322 | |||||||
Beginning balance at Dec. 31, 2021 | $ 199 | $ 152,397 | $ 850 | $ 176,988 | 60,216,722 | (269,155) | (61,339,161) | (1,061,160) | |
Beginning balance, shares at Dec. 31, 2021 | 199,100 | 3 | 8,500 | 176,988,322 | |||||
Series A preferred dividends | (89,595) | (89,595) | |||||||
Warrants issued as financing fee | 1,416 | 1,416 | |||||||
Other comprehensive income (loss) | (32,902) | (32,902) | |||||||
Net income (loss) | (646,280) | (646,280) | |||||||
Series C preferred dividends | (4,260) | (4,260) | |||||||
Preferred Series C issued for cash | $ 250 | 24,750 | 25,000 | ||||||
Preferred Series C issued for cash, shares | 2,500 | ||||||||
Ending balance at Jun. 30, 2022 | $ 199 | $ 152,397 | $ 1,100 | $ 176,988 | 60,242,888 | (302,057) | (62,079,296) | (1,807,781) | |
Ending balance, shares at Jun. 30, 2022 | 199,100 | 3 | 11,000 | 176,988,322 | |||||
Beginning balance at Mar. 31, 2022 | $ 199 | $ 152,397 | $ 1,100 | $ 176,988 | 60,242,189 | (239,298) | (61,170,710) | (87,135) | |
Beginning balance, shares at Mar. 31, 2022 | 199,100 | 3 | 11,000 | 176,988,322 | |||||
Series A preferred dividends | (44,798) | (44,798) | |||||||
Warrants issued as financing fee | 699 | 699 | |||||||
Other comprehensive income (loss) | (62,759) | (62,759) | |||||||
Net income (loss) | (861,594) | (861,594) | |||||||
Series C preferred dividends | (2,194) | (2,194) | |||||||
Ending balance at Jun. 30, 2022 | $ 199 | $ 152,397 | $ 1,100 | $ 176,988 | $ 60,242,888 | $ (302,057) | $ (62,079,296) | $ (1,807,781) | |
Ending balance, shares at Jun. 30, 2022 | 199,100 | 3 | 11,000 | 176,988,322 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | |||||
Net gain (loss) | $ (861,594) | $ (991,253) | $ (646,280) | $ (1,393,684) | |
Adjustment to reconcile net gain (loss) to net cash provided by (used in) operating activities: | |||||
Depletion, depreciation and amortization | 60,682 | 253,285 | 113,198 | 436,424 | |
Asset retirement obligation accretion | 43,420 | 93,518 | 85,898 | 181,724 | $ 316,873 |
Operating lease | (544) | (2,800) | |||
Amortization of debt discount | 27,715 | 122,429 | |||
Change in fair value of derivative liabilities | 146 | (83,111) | (17,339) | 104,605 | |
Stock-based compensation expense | 54,923 | ||||
Warrants issued as financing fees | 1,416 | 16,614 | |||
Changes in operating assets and liabilities | |||||
Accounts receivable | 5,601 | (43) | |||
Other current assets | (756) | ||||
Other assets | 40,442 | ||||
Accounts payable | 1,363,562 | 163,234 | |||
Accounts payable – related parties | (3,110) | 15,452 | |||
Accrued liabilities | 108,010 | (127,235) | |||
Accrued liabilities – related parties | 75,584 | 340,868 | |||
Net cash flows from operating activities | 1,153,397 | (87,489) | |||
Cash Flows from Investing Activities | |||||
Cash flows from investing activities | |||||
Cash Flows from Financing Activities | |||||
Repayments on notes payable | (133,491) | (20,969) | |||
Repayments on related party notes payable | (4,813) | (17,613) | |||
Series C preferred stock | 25,000 | ||||
Cash flows from financing activities | (113,304) | (38,582) | |||
Changes in foreign exchange rate | (42) | 3,105 | |||
Net change in cash | 1,040,051 | (122,966) | |||
Cash at beginning of period | 14,058 | 155,045 | 155,045 | ||
Cash at end of period | $ 1,054,109 | $ 32,079 | 1,054,109 | 32,079 | $ 14,058 |
SUPPLEMENTAL DISCLOSURES | |||||
Interest paid | 99,195 | 165,354 | |||
Income taxes paid | |||||
NON-CASH INVESTING AND FINANCIAL DISCLOSURES | |||||
Series A preferred dividends accrued | 89,595 | 89,568 | |||
Series C preferred dividends accrued | 4,260 | ||||
Conversion of related party debt and payables | 527,520 | ||||
Modification of related party debt | 181,250 | ||||
Settlement of notes payable related party for common shares | 135,000 | ||||
Utikuma acquisition – extra cost triggered by WTI | $ 1,000,000 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Petrolia Energy Corporation (the “Company”) is in the business of oil and gas exploration, development and production. Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s latest Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results of operations for the interim periods presented have been reflected herein. The results of operations for such interim periods are not necessarily indicative of operations for a full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the year ended December 31, 2021, as reported in Form 10-K, have been omitted. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Leases Leases are classified as operating leases or financing leases based on the lease term and fair value associated with the lease. The assessment is done at lease commencement and reassessed only when a modification occurs that is not considered a separate contract. Lessee arrangements Where the Company is the lessee, leases classified as operating leases are recorded as lease liabilities based on the present value of minimum lease payments over the lease term, discounted using the lessor’s rate implicit in the lease or the Company’s incremental borrowing rate, if the lessor’s implicit rate is not readily determinable. The lease term includes all periods covered by renewal and termination options where the Company is reasonably certain to exercise the renewal options or not to exercise the termination options. Corresponding right-of-use assets are recognized consisting of the lease liabilities, initial direct costs and any lease incentive payments. Lease liabilities are drawn down as lease payments are made and right-of-use assets are depreciated over the term of the lease. Operating lease expenses are recognized on a straight-line basis over the term of the lease, consisting of interest accrued on the lease liability and depreciation of the right-of-use asset, adjusted for changes in index-based variable lease payments in the period of change. Lease payments on short-term operating leases with lease terms twelve months or less are expensed as incurred. Fair Value of Financial Instruments Fair value of financial instruments requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of June 30, 2022, the amounts reported for cash, accrued interest and other expenses, notes payable, convertible notes, and derivative liability approximate the fair value because of their short maturities. We adopted ASC Topic 820 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. The hierarchy is broken down into three levels based on the observability of inputs as follows: ● Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment; ● Level 2 — Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly; and ● Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement. We measure certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows as of June 30, 2022, and December 31,2021. SCHEDULE OF DERIVATIVE LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS June 30, 2022 Level 1 Level 2 Level 3 Total Derivative liabilities — — 5,215 5,215 ARO liabilities — — 2,322,812 2,322,812 December 31, 2021 Derivative liabilities — — 22,554 22,554 ARO liabilities — — 2,257,027 2,257,027 Gain (loss) per share The computation of basic income (loss) per share of common stock is based on the weighted average number of shares outstanding |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 3. GOING CONCERN The Company has suffered recurring losses from operations and currently has a working capital deficit. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company plans to generate profits by reworking its existing oil or gas wells, as needed, funding permitting. The Company also needs to resolve its ongoing litigation, particularly in Canada with the Utikuma asset. The Company will need to raise funds through either the sale of its securities, issuance of corporate bonds, joint venture agreements and/or bank financing to accomplish its goals. The Company does not have any commitments or arrangements from any person to provide the Company with any additional capital. If additional financing is not available when needed, the company may need to cease operations. The Company may not be successful in raising the capital needed to drill and/or rework its existing wells. Any additional wells that the Company may drill may be non-productive. Management believes that actions presently being taken to secure additional funding for the reworking of its existing oilfield infrastructure will provide the opportunity for the Company to continue as a going concern. Since the Company has an oil producing asset, its goal is to increase the production rate by optimizing its current infrastructure. The Company is also actively working to resolve its ongoing litigation in both the U.S. and Canada. The accompanying financial statements have been prepared assuming the Company will continue as a going concern. No adjustments to the financial statements have been made to account for this uncertainty. |
EVALUATED PROPERTIES
EVALUATED PROPERTIES | 6 Months Ended |
Jun. 30, 2022 | |
Extractive Industries [Abstract] | |
EVALUATED PROPERTIES | NOTE 4. EVALUATED PROPERTIES The Company’s current properties can be summarized as follows. SCHEDULE OF COMPANY’S CURRENT PROPERTIES Cost Canadian properties United States properties Total As of December 31, 2020 $ 4,314,805 $ 4,304,622 $ 8,619,427 Additions 787,250 — 787,250 Dispositions (2,563,434 ) — (2,563,434 ) Foreign currency translation (46,218 ) — (46,218 ) As of December 31, 2021 $ 2,492,403 $ 4,304,622 $ 6,797,025 Foreign currency translations (40,231 ) — (40,231 ) As of June 30, 2022 $ 2,452,172 $ 4,304,622 $ 6,756,794 Accumulated depletion As of December 31, 2020 $ 2,631,749 $ 61,551 $ 2,693,300 Dispositions (2,629,672 ) — (2,629,672 ) Depletion 378,306 — 378,306 Foreign currency translation 7,026 — 7,026 As of December 31, 2021 $ 387,409 $ 61,551 $ 448,960 Depletion 112,081 — 112,081 Foreign currency translation (7,755 ) — (7,755 ) As of June 30, 2022 $ 491,736 $ 61,551 $ 553,287 Net book value as of December 31, 2021 $ 2,104,994 $ 4,243,071 $ 6,348,065 Net book value as of June 30, 2022 $ 1,960,435 $ 4,243,071 $ 6,203,506 On August 6, 2019, the Company entered into a Purchase and Sale Agreement (“PSA”) for the sale of the NOACK property with Flowtex Energy LLC (“FT”). The purchaser agreed to pay $ 400,000 20,000 380,000 375,000 25,000 400,000 25,000 8,995 16,005 On May 1, 2020, Petrolia Energy Corporation acquired a 50 28,000 100 The total purchase price of the property was $2,000,000 (CND), with $1,000,000 of that total due initially. The additional $1,000,000 was contingent on the future price of WTI crude. At the time WTI price exceeded $50/bbl, the Company would pay an additional $750,000 (CND). In addition, at the time WTI price exceeded $57/bbl the Company would pay an additional $250,000 (CND) (for a cumulative contingent total of $1,000,000). The price of WTI crude exceeded $50/bbl on January 6, 2021 and exceeded $57/bbl on February 8, 2021. The additional payments due were netted with the accounts receivable balance from previous Joint Interest Billing statements from BSR. The total USD value of the addition was $787,250, using prevailing exchange rates on the respective dates. Included in the terms of the agreement, the Company also funded their portion of the Alberta Energy Regulator (“AER”) bond fund requirement ($592,699 USD), necessary for the wells to continue in production after the acquisition. Additional funds ($380,742 USD) remain in the other current asset balance for future payments from BSR, related to the acquisition. On July 27, 2020, the Company entered into a settlement agreement pursuant to which nine leases totalling approximately 3,800 4,880 56 943,820 10,175,456 5,648,994 10,175,456 56 On April 8, 2021, the State of New Mexico Energy, Minerals and Natural Resources Oil Conservation Division (“OCD”) sent the Company a Notice of Violation alleging that the Company was not in compliance with certain New Mexico Oil and Gas Act regulations associated with required reporting, inactive wells, and financial assurance requirements. On December 30, 2021, the Company entered a Stipulated Final Order to resolve the matter. The company agreed to submit appropriate forms for the identified wells, open an escrow account and deposit funds into it, and provide the OCD with a report proposing deadlines for bringing all remaining wells into compliance. The first two wells were plugged in June of 2022. See Form 8-K reference in Exhibits section below. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
LEASES | NOTE 5. LEASES Our adoption of ASU 2016-02, Leases (Topic 842), and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet as an ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application. Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected the ‘package of practical expedients,’ which permitted us to not reassess our prior conclusions related to lease identification, lease classification, and initial direct costs, and we did not elect the use of hindsight. Lease ROU assets and liabilities are recognized at commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date, including the lease term. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. As of June 30, 2022, we did not have any short-term leases. The tables below present financial information associated with our lease. SCHEDULE OF FINANCIAL INFORMATION LEASE Balance Sheet Classification June 30, 2022 December 31, 2021 Right-of-use assets Other long-term assets 7,454 12,821 Current lease liabilities Other current liabilities 7,998 13,909 Non-current lease liabilities Other long-term liabilities — — As of June 30, 2022, the maturities of our lease liability are as follows: SCHEDULE OF MATURITIES LEASE LIABILITY 2022 $ 7,998 Less: Imputed interest (544 ) Present value of lease liabilities $ 7,454 |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 6. NOTES PAYABLE The following table summarizes the Company’s notes payable: SCHEDULE OF NOTES PAYABLE Interest rate Date of maturity June 30, 2022 December 31, 2021 Truck loan (ii) 5.49 % January 20, 2022 $ — $ 4,021 Credit note IV (iii) 10 % January 01, 2020 697,895 831,387 Discount on credit note IV (69,286 ) (97,001 ) Credit note V (iv) 10 % December 31, 2022 2,085,432 2,085,432 Lee Lytton On demand 3,500 3,500 Credit note VI (v) 10 % December 31, 2021 266,900 416,900 Credit note VII (vi) 10 % December 31, 2021 150,000 — Quinten Beasley 10 % October 14, 2016 5,000 5,000 Jovian Petroleum Corporation (vii) 3.5 % December 31, 2021 178,923 178,923 M. Horowitz 10 % October 14, 2016 10,000 10,000 $ 3,328,364 $ 3,438,162 (i) All notes are current liabilities (due within one year or less from June 30, 2022.) (ii) On January 6, 2017, the Company purchased a truck and entered into an installment note in the amount of $ 35,677 5.49% 683 (iii) On January 2, 2020, the Company entered into a loan agreement in the amount of $ 1,000,000 120,000 10% June 30, 2020 5,000,000 0.10 January 2, 2023 266,674 11,111 5,000,000 0.05 January 6, 2023 166,289 4,619.14 (iv) On May 9, 2018, Bow entered into an Amended and Restated Loan Agreement with a third party. The Loan Agreement increased by $ 800,000 1,530,000 12% 19% 10,000 710,000 May 11, 2021 800,000 25% 41,526 730,000 In order to induce the Lender to enter into the Loan Agreement, the Company agreed to issue the Lender 500,000 2,320,000 320,000 0.10 May 15, 2021 500,000 0.12 May 15, 2021 1,500,000 0.10 May 15, 2020 500,000 47,500 30,012 182,650 260,162 On September 17, 2018, the Company entered into a loan agreement with a third party for $ 200,000 3% 12% October 17, 2019 6,000 3% 146,000 346,038 On April 25, 2019, the Company entered into a promissory note (an “Acquisition Note”) with a third-party in the amount of $ 750,000 9% April 25, 2021 500,000 0.12 38,249 8,366 146,038 On December 1, 2021, the Company signed an amended loan agreement with third party for $ 2,085,432 10% December 31, 2022 25% (v) Various shareholder advances provided by a lender during 2018 and 2019. There were no formal documents drawn. Interest rates were applied based on other similar loan agreements entered into by the Company during that period. On February 12, 2021, the Company entered into an amended loan agreement in the amount of $ 416,900 10% December 31, 2021 150,000 (vi) On February 3, 2022, $ 150,000 (vii) On February 9, 2018, the Company entered into a Revolving Line of Credit Agreement (“LOC”) for $ 200,000 500,000 3.5% The following is a schedule of future minimum repayments of notes payable as of June 30, 2022: SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF NOTES PAYABLE 2022 $ 3,397,650 Thereafter — Total $ 3,397,650 |
RELATED PARTY NOTES PAYABLE
RELATED PARTY NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Notes Payable | |
RELATED PARTY NOTES PAYABLE | NOTE 7. RELATED PARTY NOTES PAYABLE The following table summarizes the Company’s related party notes payable: SCHEDULE OF RELATED PARTY NOTES PAYABLE Interest rate Date of maturity June 30, 2022 December 31, 2021 Ivar Siem (i) 9 % December 31, 2021 278,435 278,435 Mark Allen (ii) 9 % August 15, 2021 55,000 55,000 Mark Allen (iii) 12 % June 30, 2020 200,000 200,000 Mark Allen (iv) 9 % June 30, 2021 241,125 245,938 $ 774,560 $ 779,373 (i) On August 15, 2019, the Company entered into a loan agreement in the amount of $ 75,000 12% 100,000 12% 1,250,000 0.08 5,000,000 0.10 50,000 0% 200,000 0.10 March 1, 2022 278,435 9% December 21, 2021 (ii) On April 15, 2020, the Company entered into an agreement, with Mark Allen, that included a funding clause where the Company borrowed $ 55,000 9% August 15, 2021 (iii) During 2019, the Company entered into a loan agreement in the amount of $ 200,000 12% June 30, 2020 2,500,000 0.08 10,000,000 0.10 (iv) On January 3, 2020, the Company entered into a loan agreement in the amount of $ 100,000 10% June 1, 2020 400,000 0.10 January 3, 2023 31,946 1,775 125,000 10% June 1, 2020 750,000 0.10 38,249 1,903 245,938 9% June 30, 2021 The following is a schedule of future minimum repayments of related party notes payable as of June 30, 2022: SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF RELATED PARTY NOTES PAYABLE 2022 $ 774,560 Thereafter — Total $ 774,560 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS On May 18, 2018, as an inducement to enter into an Amended and Restated Loan Agreement, the Company issued, among other instruments, warrants to acquire 320,000 0.10 30,012 May 11, 2021 On January 6, 2020, as an inducement to enter into a Loan Agreement, the Company issued, among other instruments, warrants to acquire 5,000,000 0.10 144,259 On October 30, 2020, as an inducement to extend the principal payment deadline from the previously issued Loan Agreement, the Company issued additional warrants to acquire 5,000,000 0.10 95,352 A summary of the activity of the derivative liabilities is shown below: SCHEDULE OF DERIVATIVE LIABILITIES As of December 31, 2021 22,554 Additions — Fair value adjustment (17,339 ) As of June 30, 2022 $ 5,215 Derivative liability classified warrants were valued using the Black Scholes Option Pricing Model with the range of assumptions outlined below. Expected life was determined based on historical exercise data of the Company. SCHEDULE OF DERIVATIVE LIABILITY OF FAIR VALUE ASSUMPTION June 30, 2022 Risk-free interest rate 2.51 % Expected life 0.5 Expected dividend rate 0 % Expected volatility 281 % |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 6 Months Ended |
Jun. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | NOTE 9. ASSET RETIREMENT OBLIGATIONS The Company has a number of oil and gas wells in production and will have AROs once the wells are permanently removed from service. The primary obligations involve the removal and disposal of surface equipment, plugging and abandoning the wells and site restoration. Petrolia Energy Corporation (“Petrolia” or the “Company”) is the operator of certain wells located in New Mexico, at the Twin Lakes San Andres Unit (“TLSAU”) Field. TLSAU is located 45 miles from Roswell, Chaves County, New Mexico. On March 4, 2021, the Company received a letter from the Commissioner of Public Lands of the State of New Mexico, which was sent to us and certain other parties notifying such parties of certain non-compliance with the laws and regulations that it administers. The deficiencies are currently in the process of being settled by a third party agreeing to plug six wells, including at least two Company operated wells (TLSAU wells #316 and #037). The scope of the matter above included only 240 acres of the 640 acres of The New Mexico State Land Office (SLO) lease. On April 8, 2021, the State of New Mexico Energy, Minerals and Natural Resources Department Oil Conservation Division (“OCD”) sent the Company a Notice of Violation alleging that the Company was not in compliance with certain New Mexico Oil and Gas Act regulations (the “NMAC”), associated with required reporting, inactive wells and financial assurance requirements, plugging certain abandoned wells, providing required financial assurance in connection with plugging expenses, and proposing to assess certain civil penalties in the amount of an aggregate of approximately $ 35,100 As previously reported and in Petrolia’s Form 8-K dated October 25, 2021 (reference to which is hereby made), on April 8, 2021, the State of New Mexico Energy, Minerals and Natural Resources Department, Oil Conservation Division (the “OCD”) issued a Notice of Violation (the “NOV”) to Petrolia alleging that the Company violated four regulations under Title 19, Chapter 15 of the New Mexico Administrative Code (the “NMAC”) by: (i) failing to file production reports for certain wells, (ii) exceeding the number of inactive wells allowed, (iii) failing to provide financial assurance in the amount required, and (iv) failing to provide additional financial assurance in the amount required. The Company acknowledged the violations alleged in the NOV and requested an informal resolution. On December 30, 2021, to resolve this matter, Petrolia entered into a Stipulated Final Order (the “SFO”) in Case No. 21982 with the OCD whereby Petrolia among other things agreed to: (i) submit appropriate forms for wells identified on the SFO Inactive Well List, (ii) plug the specific TLSAU wells listed in section 8 (c) and (d) of the SFO, as well as submit all required information and forms specified in the SFO, (iii) open an escrow account meeting the terms listed in the SFO, (iv) deposit funds into an escrow account within the timeframe described in the SFO, and (v) provide the OCD with a report proposing deadlines for bringing all remaining wells into compliance. The Company entered into a settlement agreement on July 27, 2020 with Moon Company, Trustee of the O’Brien Mineral Trust pursuant to which nine leases totaling approximately 3,800 acres of the 4,880 acre Twin Lakes San Andres Unit were terminated as a part of the settlement agreement. Pursuant to this settlement agreement, the Company no longer has the right to produce oil, gas, or other hydrocarbons and any other minerals from the mineral estate encumbered by the leases and owned by the trustee of the O’Brien Mineral Trust. AROs associated with the retirement of tangible long-lived assets are recognized as liabilities with an increase to the carrying amounts of the related long-lived assets in the period incurred. The fair value of AROs is recognized as of the acquisition date of the working interest. The cost of the tangible asset, including the asset retirement cost, is depleted over the life of the asset. AROs are recorded at estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligations discounted at the Company’s credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value. If estimated future costs of AROs change, an adjustment is recorded to both the ARO and the long-lived asset. Revisions to estimated AROs can result from changes in retirement cost estimates, revisions to estimated discount rates and changes in the estimated timing of abandonment. For the purpose of determining the fair value of AROs incurred during the years presented, the Company used the following assumptions: SCHEDULE OF FAIR VALUE OF ASSET RETIREMENT OBLIGATIONS June 30, 2022 Inflation rate 1.92 2.15 % Estimated asset life 12 21 The following table shows the change in the Company’s ARO liability: SCHEDULE OF CHANGE IN ASSET RETIREMENT OBLIGATIONS Canadian properties United States properties Total Asset retirement obligations, December 31, 2020 $ 2,711,909 $ 912,224 $ 3,624,133 Plugging liability at Twin Lakes — 132,000 132,000 Accretion expense 290,367 26,506 316,873 Disposition (1,824,339 ) — (1,824,339 ) Foreign currency translation 8,360 — 8,360 Asset retirement obligations, December 31, 2021 $ 1,186,297 $ 1,070,730 $ 2,257,027 Accretion expense 72,043 13,855 85,898 Foreign currency translation (20,113 ) — (20,113 ) Asset retirement obligations, June 30, 2022 $ 1,238,227 $ 1,084,585 $ 2,322,812 |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
EQUITY | NOTE 10. EQUITY Preferred stock The holders of Series A Preferred Stock are entitled to receive cumulative dividends at a rate of 9 0.28 the value of each dollar of preferred stock (based on a $10 per share price) will convert into 7.1429 common shares (which results in a $0.14 per common share conversion rate). In accordance with the terms of the Preferred Stock, cumulative dividends of $ 89,595 89,568 The holders of Series B Preferred Stock do not accrue dividends and have no conversion rights. For so long as any shares of Series B Preferred Stock remain issued and outstanding, the holders thereof, voting separately as a class, have the right to vote on all shareholder matters (including, but not limited to at every meeting of the stockholders of the Company and upon any action taken by stockholders of the Company with or without a meeting) equal to sixty percent (60%) of the total vote. No shares of Series B Preferred Stock held by any person who is not then a member of Board of Directors of the Company shall have any voting rights. The holders of Series C Preferred Stock are entitled to receive cumulative dividends at a rate of 8 the value of each dollar of Series C Preferred Stock (based on a $10 per share price) will convert into 100 common shares (which results in a $0.01 per common share conversion rate). In accordance with the terms of the Series C Preferred Stock, cumulative dividends of $ 4,260 0 Common stock On January 25, 2021, the Company signed an Executive Salary Payable Agreement with Zel Khan as the Chief Executive Officer. All of Mr. Khan’s previous salary obligation was satisfied by the issuance of 1,992,272 Joel Oppenheim, former Director, was issued 316,491 Paul Deputy was reinstated Interim Chief Financial Officer and signed a Settlement and Mutual Release Agreement. In exchange for releasing the Company for any current, outstanding payroll and/or service-related liability on January 29, 2021, the Company agreed to pay Mr. Deputy $ 50,000 250,000 0.033 134,270 On March 30, 2021, Mark Allen converted $ 30,000 333,333 0.09 On March 30, 2021, Mark Allen converted a defaulted secured loan of $ 135,000 9,888 135,000 5,400,000 5,400,000 0.08 More details on the transactions above can be found in Note 11. Related Party Transactions. The common stock of Petrolia Energy Corporation is currently not traded. On September 27, 2022, the Financial Industry Regulatory Authority (“ FINRA Warrants On September 24, 2015, the Board of Directors of the Company approved the adoption of the 2015 Stock Incentive Plan (the “Plan”). The Plan provides an opportunity, subject to approval of our Board of Directors, of individual grants and awards, for any employee, officer, director or consultant of the Company. The maximum aggregate number of shares of common stock which may be issued pursuant to awards under the Plan, as amended on November 7, 2017, was 40,000,000 Continuity of the Company’s common stock purchase warrants issued and outstanding is as follows: SCHEDULE OF COMMON STOCK PURCHASE WARRANTS ISSUED AND OUTSTANDING Warrants Weighted Average Exercise Price Outstanding at year ended December 31, 2020 40,764,666 $ 0.13 Granted 9,400,000 0.09 Expired (20,464,666 ) 0.11 Outstanding at December 31, 2021 29,700,000 $ 0.13 Granted 500,000 0.10 Expired (4,480,000 ) 0.11 Outstanding at June 30, 2022 25,720,000 $ 0.13 As of June 30, 2022, the weighted-average remaining contractual life of warrants outstanding was 1.15 1.71 As of June 30, 2022, the intrinsic value of warrants outstanding is $ 0.00 0.00 The table below summarizes warrant issuances during the six months ended June 30, 2022, and year ended December 31, 2021: SCHEDULE OF WARRANTS ISSUANCE DURING PERIOD June 30, 2022 December 31, 2021 Warrants granted: Board of Directors and Advisory Board service — 3,000,000 Pursuant to financing arrangements 500,000 1,000,000 Pursuant to loan agreements — 5,400,000 Total 500,000 9,400,000 The warrants were valued using the Black Scholes Option Pricing Model with the range of assumptions outlined below. Expected life was determined based on historical data of the Company. SCHEDULE OF FAIR VALUE OF ASSUMPTION OF WARRANTS June 30, 2022 December 31, 2021 Risk-free interest rate 2.99 % 0.16 0.97 % Expected life 3.0 2.0 3.0 Expected dividend rate 0 % 0 % Expected volatility 281 % 277 356 % |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11. RELATED PARTY TRANSACTIONS On January 25, 2021, prior Board Member Joel Oppenheim was issued 316,491 60,000 0.02 53,670 On January 25, 2021, prior CEO Zel Khan was issued 1,992,272 325,000 0.025 275,193 On January 29, 2021, prior CFO Paul Deputy was reinstated as Interim Chief Financial Officer and signed an agreement that in exchange for 250,000 20 monthly payments 2,500 192,520.04 0.033 134,270 On March 30, 2021, prior President Mark Allen was issued 333,333 0.09 30,000 0.033 19,001 On March 30, 2021, prior President Mark Allen was issued 5,400,000 135,000 9,888 135,000 0.033 5,400,000 0.08 200,378 98,690 On August 21, 2021, the Company signed a Letter Agreement to divest the Company’s wholly owned Canada subsidiary, Petrolia Canada Corporation (PCC) and its assets in consideration for $ 6,500,000 5,150,000 50 28,000 28 200,000 2,000,000 1,000,000 3,300,000 200,000 On October 25, 2021, Petrolia Energy Corporation issued one share of its newly designated shares of Series B Preferred Stock to each of the three members of its then Board of Directors, (1) James E. Burns, (2) Leo Womack and (3) Ivar Siem, in consideration for services rendered to the Company as members of the Board of Directors. Such shares of Series B Preferred Stock vote in aggregate sixty percent ( 60 50,799 In October and November of 2021, Board Member Leo Womack purchased an aggregate of 2,500 25,000 On January 31, 2022, Board Member Leo Womack purchased 2,500 25,000 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 12. SEGMENT REPORTING The Company has a single SCHEDULE OF LONG-LIVED ASSETS Canada United States Total Six months ended June 30, 2021 Revenue $ 2,318,321 $ 12,286 $ 2,330,607 Production costs (2,106,632 ) (43,000 ) (2,149,632 ) Depreciation, depletion, amortization and accretion (589,631 ) (28,517 ) (618,148 ) Results of operations from producing activities $ (377,942 ) $ (59,231 ) $ (437,173 ) Total long-lived assets, June 30, 2021 $ 2,132,294 $ 4,253,535 $ 6,385,829 Six months ended June 30, 2022 Revenue $ 2,968,171 $ 6,079 $ 2,974,250 Production costs (2,789,296 ) (109,378 ) (2,898,674 ) Depreciation, depletion, amortization, and accretion (184,124 ) (14,972 ) (199,096 ) Results of operations from producing activities $ (5,249 ) $ (118,271 ) $ (123,520 ) Total long-lived assets, June 30, 2022 $ 1,960,436 $ 4,243,071 $ 6,203,507 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13. SUBSEQUENT EVENTS On March 11, 2022, Petrolia Energy Corporation (PEC) and Petrolia Canada Corporation (PCC) filed a lawsuit against Jovian Petroleum Corporation, Zel Khan and Quinten Beasley alleging fraud, breach of contract and breach of fiduciary duty. On April 18, 2022, Jovian Petroleum Corporation filed an answer and general denial. On May 12, 2022, Zel Khan and Quinten Beasley filed an answer and general denial. On September 16, 2022, Zel Khan and Quinten Beasley filed a counterclaim against PEC and PCC claiming indemnification under the provisions of the organizing and governing documents of PEC and PCC and the applicable statutory provisions. Additionally, Quinten Beasley filed a counter claim for breach of contract for the outstanding principal balance of $ 5,000 On September 16, 2022, Joel Oppenheim and Critical Update, Inc. filed a petition in intervention. On January 11, 2023, PEC and PCC filed a motion to strike the petition in intervention by Joel Oppenheim. On February 3, 2023, Joel Oppenheim filed an opposition to the motion to strike. On September 27, 2022, the Financial Industry Regulatory Authority (“ FINRA On November 4, 2022, forty acres at SUDS was acquired by Flying M. Real Estate, and Petrolia signed a new lease. On January 31, 2023, Petrolia Canada Corporation filed a Statement of Claim in the Calgary Court of King’s Bench of Alberta naming Blue Sky Resources, Ltd. as a defendant in a lawsuit. On February 9, 2023, Edna Meyer-Nelson, Suzanne Klein, and Laura S. Ward (the “Additional Intervenors”), each a shareholder of the Company, filed a separate Petition in Intervention to join in Oppenheim’s derivative suit against the Defendants. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Leases | Leases Leases are classified as operating leases or financing leases based on the lease term and fair value associated with the lease. The assessment is done at lease commencement and reassessed only when a modification occurs that is not considered a separate contract. Lessee arrangements Where the Company is the lessee, leases classified as operating leases are recorded as lease liabilities based on the present value of minimum lease payments over the lease term, discounted using the lessor’s rate implicit in the lease or the Company’s incremental borrowing rate, if the lessor’s implicit rate is not readily determinable. The lease term includes all periods covered by renewal and termination options where the Company is reasonably certain to exercise the renewal options or not to exercise the termination options. Corresponding right-of-use assets are recognized consisting of the lease liabilities, initial direct costs and any lease incentive payments. Lease liabilities are drawn down as lease payments are made and right-of-use assets are depreciated over the term of the lease. Operating lease expenses are recognized on a straight-line basis over the term of the lease, consisting of interest accrued on the lease liability and depreciation of the right-of-use asset, adjusted for changes in index-based variable lease payments in the period of change. Lease payments on short-term operating leases with lease terms twelve months or less are expensed as incurred. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value of financial instruments requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of June 30, 2022, the amounts reported for cash, accrued interest and other expenses, notes payable, convertible notes, and derivative liability approximate the fair value because of their short maturities. We adopted ASC Topic 820 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. The hierarchy is broken down into three levels based on the observability of inputs as follows: ● Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment; ● Level 2 — Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly; and ● Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement. We measure certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows as of June 30, 2022, and December 31,2021. SCHEDULE OF DERIVATIVE LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS June 30, 2022 Level 1 Level 2 Level 3 Total Derivative liabilities — — 5,215 5,215 ARO liabilities — — 2,322,812 2,322,812 December 31, 2021 Derivative liabilities — — 22,554 22,554 ARO liabilities — — 2,257,027 2,257,027 |
Gain (loss) per share | Gain (loss) per share The computation of basic income (loss) per share of common stock is based on the weighted average number of shares outstanding |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF DERIVATIVE LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS | We measure certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows as of June 30, 2022, and December 31,2021. SCHEDULE OF DERIVATIVE LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS June 30, 2022 Level 1 Level 2 Level 3 Total Derivative liabilities — — 5,215 5,215 ARO liabilities — — 2,322,812 2,322,812 December 31, 2021 Derivative liabilities — — 22,554 22,554 ARO liabilities — — 2,257,027 2,257,027 |
EVALUATED PROPERTIES (Tables)
EVALUATED PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Extractive Industries [Abstract] | |
SCHEDULE OF COMPANY’S CURRENT PROPERTIES | The Company’s current properties can be summarized as follows. SCHEDULE OF COMPANY’S CURRENT PROPERTIES Cost Canadian properties United States properties Total As of December 31, 2020 $ 4,314,805 $ 4,304,622 $ 8,619,427 Additions 787,250 — 787,250 Dispositions (2,563,434 ) — (2,563,434 ) Foreign currency translation (46,218 ) — (46,218 ) As of December 31, 2021 $ 2,492,403 $ 4,304,622 $ 6,797,025 Foreign currency translations (40,231 ) — (40,231 ) As of June 30, 2022 $ 2,452,172 $ 4,304,622 $ 6,756,794 Accumulated depletion As of December 31, 2020 $ 2,631,749 $ 61,551 $ 2,693,300 Dispositions (2,629,672 ) — (2,629,672 ) Depletion 378,306 — 378,306 Foreign currency translation 7,026 — 7,026 As of December 31, 2021 $ 387,409 $ 61,551 $ 448,960 Depletion 112,081 — 112,081 Foreign currency translation (7,755 ) — (7,755 ) As of June 30, 2022 $ 491,736 $ 61,551 $ 553,287 Net book value as of December 31, 2021 $ 2,104,994 $ 4,243,071 $ 6,348,065 Net book value as of June 30, 2022 $ 1,960,435 $ 4,243,071 $ 6,203,506 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
SCHEDULE OF FINANCIAL INFORMATION LEASE | The tables below present financial information associated with our lease. SCHEDULE OF FINANCIAL INFORMATION LEASE Balance Sheet Classification June 30, 2022 December 31, 2021 Right-of-use assets Other long-term assets 7,454 12,821 Current lease liabilities Other current liabilities 7,998 13,909 Non-current lease liabilities Other long-term liabilities — — |
SCHEDULE OF MATURITIES LEASE LIABILITY | As of June 30, 2022, the maturities of our lease liability are as follows: SCHEDULE OF MATURITIES LEASE LIABILITY 2022 $ 7,998 Less: Imputed interest (544 ) Present value of lease liabilities $ 7,454 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF NOTES PAYABLE | The following table summarizes the Company’s notes payable: SCHEDULE OF NOTES PAYABLE Interest rate Date of maturity June 30, 2022 December 31, 2021 Truck loan (ii) 5.49 % January 20, 2022 $ — $ 4,021 Credit note IV (iii) 10 % January 01, 2020 697,895 831,387 Discount on credit note IV (69,286 ) (97,001 ) Credit note V (iv) 10 % December 31, 2022 2,085,432 2,085,432 Lee Lytton On demand 3,500 3,500 Credit note VI (v) 10 % December 31, 2021 266,900 416,900 Credit note VII (vi) 10 % December 31, 2021 150,000 — Quinten Beasley 10 % October 14, 2016 5,000 5,000 Jovian Petroleum Corporation (vii) 3.5 % December 31, 2021 178,923 178,923 M. Horowitz 10 % October 14, 2016 10,000 10,000 $ 3,328,364 $ 3,438,162 (i) All notes are current liabilities (due within one year or less from June 30, 2022.) (ii) On January 6, 2017, the Company purchased a truck and entered into an installment note in the amount of $ 35,677 5.49% 683 (iii) On January 2, 2020, the Company entered into a loan agreement in the amount of $ 1,000,000 120,000 10% June 30, 2020 5,000,000 0.10 January 2, 2023 266,674 11,111 5,000,000 0.05 January 6, 2023 166,289 4,619.14 (iv) On May 9, 2018, Bow entered into an Amended and Restated Loan Agreement with a third party. The Loan Agreement increased by $ 800,000 1,530,000 12% 19% 10,000 710,000 May 11, 2021 800,000 25% 41,526 730,000 In order to induce the Lender to enter into the Loan Agreement, the Company agreed to issue the Lender 500,000 2,320,000 320,000 0.10 May 15, 2021 500,000 0.12 May 15, 2021 1,500,000 0.10 May 15, 2020 500,000 47,500 30,012 182,650 260,162 On September 17, 2018, the Company entered into a loan agreement with a third party for $ 200,000 3% 12% October 17, 2019 6,000 3% 146,000 346,038 On April 25, 2019, the Company entered into a promissory note (an “Acquisition Note”) with a third-party in the amount of $ 750,000 9% April 25, 2021 500,000 0.12 38,249 8,366 146,038 On December 1, 2021, the Company signed an amended loan agreement with third party for $ 2,085,432 10% December 31, 2022 25% (v) Various shareholder advances provided by a lender during 2018 and 2019. There were no formal documents drawn. Interest rates were applied based on other similar loan agreements entered into by the Company during that period. On February 12, 2021, the Company entered into an amended loan agreement in the amount of $ 416,900 10% December 31, 2021 150,000 (vi) On February 3, 2022, $ 150,000 (vii) On February 9, 2018, the Company entered into a Revolving Line of Credit Agreement (“LOC”) for $ 200,000 500,000 3.5% |
SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF NOTES PAYABLE | The following is a schedule of future minimum repayments of notes payable as of June 30, 2022: SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF NOTES PAYABLE 2022 $ 3,397,650 Thereafter — Total $ 3,397,650 |
RELATED PARTY NOTES PAYABLE (Ta
RELATED PARTY NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Notes Payable | |
SCHEDULE OF RELATED PARTY NOTES PAYABLE | The following table summarizes the Company’s related party notes payable: SCHEDULE OF RELATED PARTY NOTES PAYABLE Interest rate Date of maturity June 30, 2022 December 31, 2021 Ivar Siem (i) 9 % December 31, 2021 278,435 278,435 Mark Allen (ii) 9 % August 15, 2021 55,000 55,000 Mark Allen (iii) 12 % June 30, 2020 200,000 200,000 Mark Allen (iv) 9 % June 30, 2021 241,125 245,938 $ 774,560 $ 779,373 (i) On August 15, 2019, the Company entered into a loan agreement in the amount of $ 75,000 12% 100,000 12% 1,250,000 0.08 5,000,000 0.10 50,000 0% 200,000 0.10 March 1, 2022 278,435 9% December 21, 2021 (ii) On April 15, 2020, the Company entered into an agreement, with Mark Allen, that included a funding clause where the Company borrowed $ 55,000 9% August 15, 2021 (iii) During 2019, the Company entered into a loan agreement in the amount of $ 200,000 12% June 30, 2020 2,500,000 0.08 10,000,000 0.10 (iv) On January 3, 2020, the Company entered into a loan agreement in the amount of $ 100,000 10% June 1, 2020 400,000 0.10 January 3, 2023 31,946 1,775 125,000 10% June 1, 2020 750,000 0.10 38,249 1,903 245,938 9% June 30, 2021 |
SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF RELATED PARTY NOTES PAYABLE | The following is a schedule of future minimum repayments of related party notes payable as of June 30, 2022: SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF RELATED PARTY NOTES PAYABLE 2022 $ 774,560 Thereafter — Total $ 774,560 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
SCHEDULE OF DERIVATIVE LIABILITIES | A summary of the activity of the derivative liabilities is shown below: SCHEDULE OF DERIVATIVE LIABILITIES As of December 31, 2021 22,554 Additions — Fair value adjustment (17,339 ) As of June 30, 2022 $ 5,215 |
SCHEDULE OF DERIVATIVE LIABILITY OF FAIR VALUE ASSUMPTION | Derivative liability classified warrants were valued using the Black Scholes Option Pricing Model with the range of assumptions outlined below. Expected life was determined based on historical exercise data of the Company. SCHEDULE OF DERIVATIVE LIABILITY OF FAIR VALUE ASSUMPTION June 30, 2022 Risk-free interest rate 2.51 % Expected life 0.5 Expected dividend rate 0 % Expected volatility 281 % |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
SCHEDULE OF FAIR VALUE OF ASSET RETIREMENT OBLIGATIONS | For the purpose of determining the fair value of AROs incurred during the years presented, the Company used the following assumptions: SCHEDULE OF FAIR VALUE OF ASSET RETIREMENT OBLIGATIONS June 30, 2022 Inflation rate 1.92 2.15 % Estimated asset life 12 21 |
SCHEDULE OF CHANGE IN ASSET RETIREMENT OBLIGATIONS | The following table shows the change in the Company’s ARO liability: SCHEDULE OF CHANGE IN ASSET RETIREMENT OBLIGATIONS Canadian properties United States properties Total Asset retirement obligations, December 31, 2020 $ 2,711,909 $ 912,224 $ 3,624,133 Plugging liability at Twin Lakes — 132,000 132,000 Accretion expense 290,367 26,506 316,873 Disposition (1,824,339 ) — (1,824,339 ) Foreign currency translation 8,360 — 8,360 Asset retirement obligations, December 31, 2021 $ 1,186,297 $ 1,070,730 $ 2,257,027 Accretion expense 72,043 13,855 85,898 Foreign currency translation (20,113 ) — (20,113 ) Asset retirement obligations, June 30, 2022 $ 1,238,227 $ 1,084,585 $ 2,322,812 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
SCHEDULE OF COMMON STOCK PURCHASE WARRANTS ISSUED AND OUTSTANDING | Continuity of the Company’s common stock purchase warrants issued and outstanding is as follows: SCHEDULE OF COMMON STOCK PURCHASE WARRANTS ISSUED AND OUTSTANDING Warrants Weighted Average Exercise Price Outstanding at year ended December 31, 2020 40,764,666 $ 0.13 Granted 9,400,000 0.09 Expired (20,464,666 ) 0.11 Outstanding at December 31, 2021 29,700,000 $ 0.13 Granted 500,000 0.10 Expired (4,480,000 ) 0.11 Outstanding at June 30, 2022 25,720,000 $ 0.13 |
SCHEDULE OF WARRANTS ISSUANCE DURING PERIOD | The table below summarizes warrant issuances during the six months ended June 30, 2022, and year ended December 31, 2021: SCHEDULE OF WARRANTS ISSUANCE DURING PERIOD June 30, 2022 December 31, 2021 Warrants granted: Board of Directors and Advisory Board service — 3,000,000 Pursuant to financing arrangements 500,000 1,000,000 Pursuant to loan agreements — 5,400,000 Total 500,000 9,400,000 |
SCHEDULE OF FAIR VALUE OF ASSUMPTION OF WARRANTS | The warrants were valued using the Black Scholes Option Pricing Model with the range of assumptions outlined below. Expected life was determined based on historical data of the Company. SCHEDULE OF FAIR VALUE OF ASSUMPTION OF WARRANTS June 30, 2022 December 31, 2021 Risk-free interest rate 2.99 % 0.16 0.97 % Expected life 3.0 2.0 3.0 Expected dividend rate 0 % 0 % Expected volatility 281 % 277 356 % |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF LONG-LIVED ASSETS | SCHEDULE OF LONG-LIVED ASSETS Canada United States Total Six months ended June 30, 2021 Revenue $ 2,318,321 $ 12,286 $ 2,330,607 Production costs (2,106,632 ) (43,000 ) (2,149,632 ) Depreciation, depletion, amortization and accretion (589,631 ) (28,517 ) (618,148 ) Results of operations from producing activities $ (377,942 ) $ (59,231 ) $ (437,173 ) Total long-lived assets, June 30, 2021 $ 2,132,294 $ 4,253,535 $ 6,385,829 Six months ended June 30, 2022 Revenue $ 2,968,171 $ 6,079 $ 2,974,250 Production costs (2,789,296 ) (109,378 ) (2,898,674 ) Depreciation, depletion, amortization, and accretion (184,124 ) (14,972 ) (199,096 ) Results of operations from producing activities $ (5,249 ) $ (118,271 ) $ (123,520 ) Total long-lived assets, June 30, 2022 $ 1,960,436 $ 4,243,071 $ 6,203,507 |
SCHEDULE OF DERIVATIVE LIABILIT
SCHEDULE OF DERIVATIVE LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Derivative liabilities | $ 5,215 | $ 22,554 |
ARO liabilities | 2,322,812 | 2,257,027 |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Derivative liabilities | ||
ARO liabilities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Derivative liabilities | ||
ARO liabilities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Derivative liabilities | 5,215 | 22,554 |
ARO liabilities | $ 2,322,812 | $ 2,257,027 |
SCHEDULE OF COMPANY_S CURRENT P
SCHEDULE OF COMPANY’S CURRENT PROPERTIES (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Evaluated properties, beginning balance | $ 6,797,025 | $ 8,619,427 |
Cost, Additions | 787,250 | |
Cost, Disposition | (2,563,434) | |
Cost, Foreign currency translation | (40,231) | (46,218) |
Evaluated properties, ending balance | 6,756,794 | 6,797,025 |
Oil and Gas Property, Full Cost Method, Depletion, beginning balance | 448,960 | 2,693,300 |
Accumulated depletion, Dispositions | (2,629,672) | |
Accumulated depletion, Depletion | 112,081 | 378,306 |
Accumulated depletion, Foreign currency translation | (7,755) | 7,026 |
Oil and Gas Property, Full Cost Method, Depletion, ending balance | 553,287 | 448,960 |
Net book value as at ending balance | 6,203,506 | 6,348,065 |
Canadian Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Evaluated properties, beginning balance | 2,492,403 | 4,314,805 |
Cost, Additions | 787,250 | |
Cost, Disposition | (2,563,434) | |
Cost, Foreign currency translation | (40,231) | (46,218) |
Evaluated properties, ending balance | 2,452,172 | 2,492,403 |
Oil and Gas Property, Full Cost Method, Depletion, beginning balance | 387,409 | 2,631,749 |
Accumulated depletion, Dispositions | (2,629,672) | |
Accumulated depletion, Depletion | 112,081 | 378,306 |
Accumulated depletion, Foreign currency translation | (7,755) | 7,026 |
Oil and Gas Property, Full Cost Method, Depletion, ending balance | 491,736 | 387,409 |
Net book value as at ending balance | 1,960,435 | 2,104,994 |
US Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Evaluated properties, beginning balance | 4,304,622 | 4,304,622 |
Cost, Additions | ||
Cost, Disposition | ||
Cost, Foreign currency translation | ||
Evaluated properties, ending balance | 4,304,622 | 4,304,622 |
Oil and Gas Property, Full Cost Method, Depletion, beginning balance | 61,551 | 61,551 |
Accumulated depletion, Dispositions | ||
Accumulated depletion, Depletion | ||
Accumulated depletion, Foreign currency translation | ||
Oil and Gas Property, Full Cost Method, Depletion, ending balance | 61,551 | 61,551 |
Net book value as at ending balance | $ 4,243,071 | $ 4,243,071 |
EVALUATED PROPERTIES (Details N
EVALUATED PROPERTIES (Details Narrative) | 6 Months Ended | 12 Months Ended | |||||||
Jul. 06, 2021 USD ($) | Jun. 30, 2021 USD ($) | May 01, 2020 a | Aug. 06, 2019 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2019 USD ($) | Jul. 27, 2020 USD ($) a shares | Sep. 30, 2019 USD ($) | Aug. 15, 2019 USD ($) | |
Reserve Quantities [Line Items] | |||||||||
Area of land | a | 28,000 | ||||||||
TLSAU [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Area of Land | a | 4,880 | ||||||||
Blue Sky [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Increased working interest | 50% | ||||||||
Business combination, description | The total purchase price of the property was $2,000,000 (CND), with $1,000,000 of that total due initially. The additional $1,000,000 was contingent on the future price of WTI crude. At the time WTI price exceeded $50/bbl, the Company would pay an additional $750,000 (CND). In addition, at the time WTI price exceeded $57/bbl the Company would pay an additional $250,000 (CND) (for a cumulative contingent total of $1,000,000). The price of WTI crude exceeded $50/bbl on January 6, 2021 and exceeded $57/bbl on February 8, 2021. The additional payments due were netted with the accounts receivable balance from previous Joint Interest Billing statements from BSR. The total USD value of the addition was $787,250, using prevailing exchange rates on the respective dates. Included in the terms of the agreement, the Company also funded their portion of the Alberta Energy Regulator (“AER”) bond fund requirement ($592,699 USD), necessary for the wells to continue in production after the acquisition. Additional funds ($380,742 USD) remain in the other current asset balance for future payments from BSR, related to the acquisition. | ||||||||
Vermilion Energy Inc [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Increased working interest | 100% | ||||||||
Settlement Agreement [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Area of Land | a | 3,800 | ||||||||
Reserves forfeited percentage | 56% | ||||||||
Full cost pools reserves forfeited | shares | 943,820 | ||||||||
Net property balance | $ 10,175,456 | ||||||||
Property write down value | $ 5,648,994 | ||||||||
NOACK [Member] | Purchase and Sale Agreement [Member] | FlowTex Energy L.L.C. [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Debt payment principal | $ 400,000 | ||||||||
Deposit | $ 380,000 | $ 20,000 | |||||||
Proceeds from 2nd NOACK sale | $ 375,000 | ||||||||
Receivable for the sale | $ 25,000 | $ 25,000 | |||||||
Gain on sale of properties | $ 400,000 | ||||||||
Remitted a cash payment | 8,995 | ||||||||
Outstanding property tax | $ 16,005 |
SCHEDULE OF FINANCIAL INFORMATI
SCHEDULE OF FINANCIAL INFORMATION LEASE (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Leases | ||
Right-of-use assets | $ 7,454 | $ 12,821 |
Current lease liabilities | 7,998 | 13,909 |
Non-current lease liabilities |
SCHEDULE OF MATURITIES LEASE LI
SCHEDULE OF MATURITIES LEASE LIABILITY (Details) | Jun. 30, 2022 USD ($) |
Leases | |
2022 | $ 7,998 |
Less: Imputed interest | (544) |
Present value of lease liabilities | $ 7,454 |
SCHEDULE OF NOTES PAYABLE (Deta
SCHEDULE OF NOTES PAYABLE (Details) - USD ($) | 6 Months Ended | ||||
Jun. 30, 2022 | Dec. 31, 2021 | Jan. 06, 2017 | |||
Short-Term Debt [Line Items] | |||||
Notes payable | $ 3,328,364 | $ 3,438,162 | |||
Truck Loan [Member] | |||||
Short-Term Debt [Line Items] | |||||
Interest rate | 5.49% | [1] | 5.49% | ||
Date of maturity | [1] | Jan. 20, 2022 | |||
Notes payable | [1] | 4,021 | |||
Credit Note IV [Member] | |||||
Short-Term Debt [Line Items] | |||||
Interest rate | [2] | 10% | |||
Date of maturity | [2] | Jan. 01, 2020 | |||
Notes payable | [2] | $ 697,895 | 831,387 | ||
Discount on Credit Note IV [Member] | |||||
Short-Term Debt [Line Items] | |||||
Discount | $ (69,286) | (97,001) | |||
Credit Note V [Member] | |||||
Short-Term Debt [Line Items] | |||||
Interest rate | [3] | 10% | |||
Date of maturity | [3] | Dec. 31, 2022 | |||
Notes payable | [3] | $ 2,085,432 | 2,085,432 | ||
Lee Lytton [Member] | |||||
Short-Term Debt [Line Items] | |||||
Notes payable | $ 3,500 | 3,500 | |||
Date of maturity | On demand | ||||
Credit Note VI [Member] | |||||
Short-Term Debt [Line Items] | |||||
Interest rate | [4] | 10% | |||
Date of maturity | [4] | Dec. 31, 2021 | |||
Notes payable | [4] | $ 266,900 | 416,900 | ||
Credit Note VII [Member] | |||||
Short-Term Debt [Line Items] | |||||
Interest rate | [5] | 10% | |||
Date of maturity | [5] | Dec. 31, 2021 | |||
Notes payable | [5] | $ 150,000 | |||
Quinten Beasley [Member] | |||||
Short-Term Debt [Line Items] | |||||
Interest rate | 10% | ||||
Date of maturity | Oct. 14, 2016 | ||||
Notes payable | $ 5,000 | 5,000 | |||
Jovian Petroleum Corporation [Member] | |||||
Short-Term Debt [Line Items] | |||||
Interest rate | [6] | 3.50% | |||
Date of maturity | [6] | Dec. 31, 2021 | |||
Notes payable | [6] | $ 178,923 | 178,923 | ||
M Horowitz [Member] | |||||
Short-Term Debt [Line Items] | |||||
Interest rate | 10% | ||||
Date of maturity | Oct. 14, 2016 | ||||
Notes payable | $ 10,000 | $ 10,000 | |||
[1]On January 6, 2017, the Company purchased a truck and entered into an installment note in the amount of $ 35,677 5.49% 683 1,000,000 120,000 10% June 30, 2020 5,000,000 0.10 January 2, 2023 266,674 11,111 5,000,000 0.05 January 6, 2023 166,289 4,619.14 800,000 1,530,000 12% 19% 10,000 710,000 May 11, 2021 800,000 25% 41,526 730,000 416,900 10% December 31, 2021 150,000 150,000 200,000 500,000 3.5% |
SCHEDULE OF NOTES PAYABLE (De_2
SCHEDULE OF NOTES PAYABLE (Details) (Parenthetical) | 6 Months Ended | 9 Months Ended | |||||||||||||||||||||||||
Dec. 02, 2021 USD ($) | Feb. 12, 2021 USD ($) | Oct. 30, 2020 USD ($) $ / shares shares | Jan. 02, 2020 USD ($) shares | Apr. 25, 2019 USD ($) $ / shares shares | Sep. 17, 2018 USD ($) | May 18, 2018 $ / shares shares | May 09, 2018 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) a | Jun. 30, 2021 USD ($) | Sep. 30, 2019 USD ($) | Mar. 11, 2022 USD ($) | Feb. 03, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 02, 2021 USD ($) | Dec. 31, 2020 USD ($) | May 01, 2020 a | Feb. 28, 2020 USD ($) shares | Feb. 28, 2020 $ / shares | Jan. 06, 2020 $ / shares shares | Jan. 02, 2020 $ / shares | May 09, 2018 $ / shares | Apr. 12, 2018 USD ($) | Feb. 09, 2018 USD ($) | Jan. 06, 2017 USD ($) | |||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt face amount | $ 5,000 | $ 150,000 | |||||||||||||||||||||||||
Notes payable current | $ 3,328,364 | $ 3,438,162 | |||||||||||||||||||||||||
Amortization of Debt Discount (Premium) | 27,715 | $ 122,429 | |||||||||||||||||||||||||
Area of land | a | 28,000 | ||||||||||||||||||||||||||
Debt obligation | 3,328,364 | 3,438,162 | |||||||||||||||||||||||||
Fair value of warrants issued | 1,416 | $ 16,614 | |||||||||||||||||||||||||
Blue Sky Resources Ltd [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt face amount | $ 150,000 | ||||||||||||||||||||||||||
Jovian Petroleum Corporation [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt interest rate | 3.50% | ||||||||||||||||||||||||||
Loan Agreement [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt face amount | $ 1,000,000 | $ 200,000 | $ 50,000 | ||||||||||||||||||||||||
Debt interest rate | 10% | 12% | 0% | ||||||||||||||||||||||||
Origination fee | $ 120,000 | ||||||||||||||||||||||||||
Debt instrument, maturity date | Jun. 30, 2020 | Oct. 17, 2019 | |||||||||||||||||||||||||
Warrants to acquire of common stock | shares | 5,000,000 | 5,000,000 | 200,000 | 5,000,000 | |||||||||||||||||||||||
Warrant exercise price | (per share) | $ 0.05 | $ 0.10 | $ 0.10 | $ 0.10 | |||||||||||||||||||||||
Warrant expiry date | Jan. 06, 2023 | Jan. 02, 2023 | Mar. 01, 2022 | ||||||||||||||||||||||||
Debt instrument, unamortized discount | $ 166,289 | $ 266,674 | |||||||||||||||||||||||||
Amortization of Debt Discount (Premium) | $ 4,619.14 | $ 11,111 | |||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 6,000 | ||||||||||||||||||||||||||
Number of common stock issued | shares | 500,000 | ||||||||||||||||||||||||||
Number of common stock issued, value | $ 47,500 | ||||||||||||||||||||||||||
Fair value of warrants issued | 182,650 | ||||||||||||||||||||||||||
Loss on extinguishment of debt | 260,162 | ||||||||||||||||||||||||||
Working interest percentage | 3% | ||||||||||||||||||||||||||
Revolving line of credit | $ 146,000 | ||||||||||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 346,038 | ||||||||||||||||||||||||||
Loan Agreement [Member] | Canadian Dollars [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Fair value of warrants issued | $ 30,012 | ||||||||||||||||||||||||||
Loan Agreement [Member] | Lender [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Warrants to acquire of common stock | shares | 2,320,000 | ||||||||||||||||||||||||||
Number of common stock issued | shares | 500,000 | ||||||||||||||||||||||||||
Loan Agreement [Member] | Lender [Member] | Loan Warrant I [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Warrants to acquire of common stock | shares | 320,000 | ||||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 0.10 | ||||||||||||||||||||||||||
Warrant expiry date | May 15, 2021 | ||||||||||||||||||||||||||
Loan Agreement [Member] | Lender [Member] | Loan Warrant II [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Warrants to acquire of common stock | shares | 500,000 | ||||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 0.12 | ||||||||||||||||||||||||||
Warrant expiry date | May 15, 2021 | ||||||||||||||||||||||||||
Loan Agreement [Member] | Lender [Member] | Loan Warrant III [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Warrants to acquire of common stock | shares | 1,500,000 | ||||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 0.10 | ||||||||||||||||||||||||||
Warrant expiry date | May 15, 2020 | ||||||||||||||||||||||||||
Loan Agreement [Member] | Blue Sky Resources Ltd [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt obligation | $ 730,000 | ||||||||||||||||||||||||||
Loan Agreement [Member] | Luseland, Hearts Hill and Cuthbert Fields [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Assets working interest | 25% | ||||||||||||||||||||||||||
Area of land | a | 41,526 | ||||||||||||||||||||||||||
Amended and Restated Loan Agreement [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt face amount | $ 800,000 | ||||||||||||||||||||||||||
Debt interest rate | 12% | ||||||||||||||||||||||||||
Notes payable current | $ 710,000 | ||||||||||||||||||||||||||
Debt instrument, maturity date | May 11, 2021 | ||||||||||||||||||||||||||
Warrants to acquire of common stock | shares | 320,000 | ||||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 0.10 | ||||||||||||||||||||||||||
Warrant expiry date | May 11, 2021 | ||||||||||||||||||||||||||
Increase in loan amount | $ 1,530,000 | ||||||||||||||||||||||||||
Debt default interest rate | 19% | ||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 10,000 | ||||||||||||||||||||||||||
Amended Loan Agreement [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt face amount | $ 2,085,432 | $ 416,900 | |||||||||||||||||||||||||
Debt interest rate | 10% | 10% | |||||||||||||||||||||||||
Debt instrument, maturity date | Dec. 31, 2022 | Dec. 31, 2021 | |||||||||||||||||||||||||
Assets working interest | 25% | ||||||||||||||||||||||||||
Revolving line of credit agreement [Member] | Jovian Petroleum Corporation [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Revolving line of credit | $ 500,000 | $ 200,000 | |||||||||||||||||||||||||
Truck Loan [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt face amount | $ 35,677 | ||||||||||||||||||||||||||
Debt interest rate | 5.49% | [1] | 5.49% | ||||||||||||||||||||||||
Notes payable current | $ 683 | ||||||||||||||||||||||||||
Debt instrument, maturity date | [1] | Jan. 20, 2022 | |||||||||||||||||||||||||
Debt obligation | [1] | $ 4,021 | |||||||||||||||||||||||||
Acquisition Note [Member] | |||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||
Debt face amount | $ 750,000 | $ 146,038 | |||||||||||||||||||||||||
Debt interest rate | 9% | ||||||||||||||||||||||||||
Debt instrument, maturity date | Apr. 25, 2021 | ||||||||||||||||||||||||||
Warrants to acquire of common stock | shares | 500,000 | ||||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 0.12 | ||||||||||||||||||||||||||
Debt instrument, unamortized discount | $ 38,249 | ||||||||||||||||||||||||||
Amortization of Debt Discount (Premium) | $ 8,366 | ||||||||||||||||||||||||||
[1]On January 6, 2017, the Company purchased a truck and entered into an installment note in the amount of $ 35,677 5.49% 683 |
SCHEDULE OF FUTURE MINIMUM REPA
SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF NOTES PAYABLE (Details) - Notes Payable [Member] | Jun. 30, 2022 USD ($) |
Short-Term Debt [Line Items] | |
2022 | $ 3,397,650 |
Thereafter | |
Total | $ 3,397,650 |
SCHEDULE OF RELATED PARTY NOTES
SCHEDULE OF RELATED PARTY NOTES PAYABLE (Details) - USD ($) | 6 Months Ended | ||||
Apr. 15, 2020 | Jun. 30, 2022 | Dec. 31, 2021 | |||
Defined Benefit Plan Disclosure [Line Items] | |||||
Notes payable - related party | $ 774,560 | $ 779,373 | |||
Ivar Siem [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest rate | [1] | 9% | |||
Date of maturity | [1] | Dec. 31, 2021 | |||
Notes payable - related party | [1] | $ 278,435 | 278,435 | ||
Mark M Allen [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest rate | 9% | 9% | [2] | ||
Date of maturity | Aug. 15, 2021 | Aug. 15, 2021 | [2] | ||
Notes payable - related party | [2] | $ 55,000 | 55,000 | ||
Mark M Allen One [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest rate | [3] | 12% | |||
Date of maturity | [3] | Jun. 30, 2020 | |||
Notes payable - related party | [3] | $ 200,000 | 200,000 | ||
Mark M Allen Two [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest rate | [4] | 9% | |||
Date of maturity | [4] | Jun. 30, 2021 | |||
Notes payable - related party | [4] | $ 241,125 | $ 245,938 | ||
[1]On August 15, 2019, the Company entered into a loan agreement in the amount of $ 75,000 12% 100,000 12% 1,250,000 0.08 5,000,000 0.10 50,000 0% 200,000 0.10 March 1, 2022 278,435 9% December 21, 2021 55,000 9% August 15, 2021 200,000 12% June 30, 2020 2,500,000 0.08 10,000,000 0.10 100,000 10% June 1, 2020 400,000 0.10 January 3, 2023 31,946 1,775 125,000 10% June 1, 2020 750,000 0.10 38,249 1,903 245,938 9% June 30, 2021 |
SCHEDULE OF RELATED PARTY NOT_2
SCHEDULE OF RELATED PARTY NOTES PAYABLE (Details) (Parenthetical) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jan. 31, 2022 shares | Jan. 02, 2021 USD ($) | Oct. 30, 2020 USD ($) $ / shares shares | Apr. 15, 2020 USD ($) | Feb. 14, 2020 USD ($) $ / shares shares | Feb. 13, 2020 | Jan. 03, 2020 USD ($) shares | Jan. 02, 2020 USD ($) shares | Dec. 04, 2019 USD ($) $ / shares shares | Sep. 17, 2018 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2019 USD ($) $ / shares shares | Mar. 11, 2022 USD ($) | Feb. 03, 2022 USD ($) | Mar. 30, 2021 $ / shares | Feb. 28, 2020 USD ($) shares | Feb. 28, 2020 $ / shares | Jan. 06, 2020 $ / shares shares | Jan. 03, 2020 $ / shares | Jan. 02, 2020 $ / shares | Aug. 15, 2019 USD ($) | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||||||
Debt instrument face amount | $ 5,000 | $ 150,000 | ||||||||||||||||||||||
Amortization of debt discount | $ 27,715 | $ 122,429 | ||||||||||||||||||||||
Leo Womack [Member] | ||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||||||
Shares issued on conversion of debt | shares | 2,500 | |||||||||||||||||||||||
Ivar Siem [Member] | ||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||||||
Debt interest rate | [1] | 9% | ||||||||||||||||||||||
Debt maturity date | [1] | Dec. 31, 2021 | ||||||||||||||||||||||
Mark M Allen [Member] | ||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||||||
Debt instrument face amount | $ 55,000 | |||||||||||||||||||||||
Debt interest rate | 9% | 9% | [2] | |||||||||||||||||||||
Conversion price | $ / shares | $ 0.09 | |||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 0.08 | |||||||||||||||||||||||
Debt maturity date | Aug. 15, 2021 | Aug. 15, 2021 | [2] | |||||||||||||||||||||
Loan Agreement [Member] | ||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||||||
Debt instrument face amount | $ 1,000,000 | $ 200,000 | $ 50,000 | |||||||||||||||||||||
Debt interest rate | 10% | 12% | 0% | |||||||||||||||||||||
Warrant exercise price | (per share) | $ 0.05 | $ 0.10 | $ 0.10 | $ 0.10 | ||||||||||||||||||||
Warrant to purchase of common stock | shares | 5,000,000 | 5,000,000 | 200,000 | 5,000,000 | ||||||||||||||||||||
Warrants maturity date | Jan. 06, 2023 | Jan. 02, 2023 | Mar. 01, 2022 | |||||||||||||||||||||
Debt maturity date | Jun. 30, 2020 | Oct. 17, 2019 | ||||||||||||||||||||||
Amortization of debt discount | $ 4,619.14 | $ 11,111 | ||||||||||||||||||||||
Loan Agreement [Member] | Warrant [Member] | ||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 0.10 | |||||||||||||||||||||||
Warrant to purchase of common stock | shares | 5,000,000 | |||||||||||||||||||||||
Loan Agreement [Member] | Ivar Siem [Member] | ||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||||||
Debt instrument face amount | $ 278,435 | $ 100,000 | $ 75,000 | |||||||||||||||||||||
Debt interest rate | 9% | 12% | 12% | |||||||||||||||||||||
Shares issued on conversion of debt | shares | 1,250,000 | |||||||||||||||||||||||
Conversion price | $ / shares | $ 0.08 | |||||||||||||||||||||||
Debt maturity date | Dec. 21, 2021 | |||||||||||||||||||||||
Loan Agreement [Member] | Ivar Siem [Member] | Warrant [Member] | ||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||||||
Shares issued on conversion of debt | shares | 5,000,000 | |||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 0.10 | |||||||||||||||||||||||
Loan Agreement [Member] | Mark M Allen [Member] | ||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||||||
Debt instrument face amount | $ 245,938 | $ 125,000 | $ 100,000 | $ 200,000 | ||||||||||||||||||||
Debt interest rate | 9% | 10% | 10% | 12% | ||||||||||||||||||||
Shares issued on conversion of debt | shares | 2,500,000 | |||||||||||||||||||||||
Conversion price | $ / shares | $ 0.08 | |||||||||||||||||||||||
Warrant exercise price | (per share) | $ 0.10 | $ 0.10 | ||||||||||||||||||||||
Warrant to purchase of common stock | shares | 750,000 | 400,000 | ||||||||||||||||||||||
Warrants maturity date | Jan. 03, 2023 | |||||||||||||||||||||||
Debt maturity date | Jun. 30, 2021 | Jun. 01, 2020 | Jun. 01, 2020 | Jun. 30, 2020 | ||||||||||||||||||||
Amortization of debt discount | $ 38,249 | $ 31,946 | ||||||||||||||||||||||
Amortization of debt | $ 1,903 | $ 1,775 | ||||||||||||||||||||||
Loan Agreement [Member] | Mark M Allen [Member] | Warrant [Member] | ||||||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||||||
Shares issued on conversion of debt | shares | 10,000,000 | |||||||||||||||||||||||
Warrant exercise price | $ / shares | $ 0.10 | |||||||||||||||||||||||
[1]On August 15, 2019, the Company entered into a loan agreement in the amount of $ 75,000 12% 100,000 12% 1,250,000 0.08 5,000,000 0.10 50,000 0% 200,000 0.10 March 1, 2022 278,435 9% December 21, 2021 55,000 9% August 15, 2021 |
SCHEDULE OF FUTURE MINIMUM RE_2
SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF RELATED PARTY NOTES PAYABLE (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Related Party Notes Payable | ||
2022 | $ 774,560 | |
Thereafter | ||
Total | $ 774,560 | $ 779,373 |
SCHEDULE OF DERIVATIVE LIABIL_2
SCHEDULE OF DERIVATIVE LIABILITIES (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Investments, All Other Investments [Abstract] | |
Derivative liability | $ 22,554 |
Additions | |
Fair value adjustments | (17,339) |
Balance, ending | $ 5,215 |
SCHEDULE OF DERIVATIVE LIABIL_3
SCHEDULE OF DERIVATIVE LIABILITY OF FAIR VALUE ASSUMPTION (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Measurement Input, Risk Free Interest Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, expected volatility | 2.51 |
Measurement Input, Expected Term [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, expected life | 6 months |
Measurement Input, Expected Dividend Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, expected volatility | 0 |
Measurement Input Expected Volatility [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, expected volatility | 2.81 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details Narrative) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 30, 2020 USD ($) $ / shares shares | Feb. 28, 2020 $ / shares shares | Jan. 06, 2020 USD ($) $ / shares shares | Jan. 02, 2020 $ / shares shares | May 18, 2018 USD ($) $ / shares shares |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Derivative liability | $ 5,215 | $ 22,554 | |||||
Amended and Restated Loan Agreement [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Warrants to acquire of common stock | shares | 320,000 | ||||||
Warrant exercise price | $ / shares | $ 0.10 | ||||||
Derivative liability | $ 30,012 | ||||||
Warrant maturity date | May 11, 2021 | ||||||
Loan Agreement [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Warrants to acquire of common stock | shares | 5,000,000 | 200,000 | 5,000,000 | 5,000,000 | |||
Warrant exercise price | (per share) | $ 0.05 | $ 0.10 | $ 0.10 | $ 0.10 | |||
Derivative liability | $ 144,259 | ||||||
Warrant maturity date | Jan. 06, 2023 | Mar. 01, 2022 | Jan. 02, 2023 | ||||
Loan Agreement [Member] | Warrant [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Warrants to acquire of common stock | shares | 5,000,000 | ||||||
Warrant exercise price | $ / shares | $ 0.10 | ||||||
Derivative liability | $ 95,352 |
SCHEDULE OF FAIR VALUE OF ASSET
SCHEDULE OF FAIR VALUE OF ASSET RETIREMENT OBLIGATIONS (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Minimum [Member] | |
Inflation rate | 1.92% |
Estimated asset life | 12 years |
Maximum [Member] | |
Inflation rate | 2.15% |
Estimated asset life | 21 years |
SCHEDULE OF CHANGE IN ASSET RET
SCHEDULE OF CHANGE IN ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Asset retirement obligations at beginning of period | $ 2,257,027 | $ 3,624,133 | $ 3,624,133 | ||
Plugging liability atTwin Lakes | 132,000 | ||||
Accretion expense | $ 43,420 | $ 93,518 | 85,898 | 181,724 | 316,873 |
Disposition | (1,824,339) | ||||
Foreign currency translation | (20,113) | 8,360 | |||
Asset retirement obligations at end of period | 2,322,812 | 2,322,812 | 2,257,027 | ||
Canadian Properties [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Asset retirement obligations at beginning of period | 1,186,297 | 2,711,909 | 2,711,909 | ||
Plugging liability atTwin Lakes | |||||
Accretion expense | 72,043 | 290,367 | |||
Disposition | (1,824,339) | ||||
Foreign currency translation | (20,113) | 8,360 | |||
Asset retirement obligations at end of period | 1,238,227 | 1,238,227 | 1,186,297 | ||
US Properties [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Asset retirement obligations at beginning of period | 1,070,730 | $ 912,224 | 912,224 | ||
Plugging liability atTwin Lakes | 132,000 | ||||
Accretion expense | 13,855 | 26,506 | |||
Disposition | |||||
Foreign currency translation | |||||
Asset retirement obligations at end of period | $ 1,084,585 | $ 1,084,585 | $ 1,070,730 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details Narrative) | Apr. 08, 2021 USD ($) |
Asset Retirement Obligation Disclosure [Abstract] | |
Legal penalties | $ 35,100 |
SCHEDULE OF COMMON STOCK PURCHA
SCHEDULE OF COMMON STOCK PURCHASE WARRANTS ISSUED AND OUTSTANDING (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Warrants Outstanding, Beginning balance | 29,700,000 | 40,764,666 |
Weighted Average Exercise Price, Beginning balance | $ 0.13 | $ 0.13 |
Warrants outstanding, granted | 500,000 | 9,400,000 |
Weighted average exercise price, granted | $ 0.10 | $ 0.09 |
Warrants outstanding, expired | (4,480,000) | (20,464,666) |
Weighted average exercise price, expired | $ 0.11 | $ 0.11 |
Warrants Outstanding, Beginning balance | 25,720,000 | 29,700,000 |
Weighted Average Exercise Price, Beginning balance | $ 0.13 | $ 0.13 |
SCHEDULE OF WARRANTS ISSUANCE D
SCHEDULE OF WARRANTS ISSUANCE DURING PERIOD (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of Warrants granted | 500,000 | 9,400,000 |
Warrant [Member] | Finance Arrangement [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of Warrants granted | 500,000 | 1,000,000 |
Warrant [Member] | Loan Agreement [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of Warrants granted | 5,400,000 | |
Warrant [Member] | Board of Directors and Advisory Board Service [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of Warrants granted | 3,000,000 |
SCHEDULE OF FAIR VALUE OF ASSUM
SCHEDULE OF FAIR VALUE OF ASSUMPTION OF WARRANTS (Details) | Jun. 30, 2022 | Dec. 31, 2021 |
Measurement Input, Risk Free Interest Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 2.99 | |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 0.16 | |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 0.97 | |
Measurement Input, Expected Term [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected life | 3 years | |
Measurement Input, Expected Term [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected life | 2 years | |
Measurement Input, Expected Term [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected life | 3 years | |
Measurement Input, Expected Dividend Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 0 | 0 |
Measurement Input, Price Volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 281 | |
Measurement Input, Price Volatility [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 277 | |
Measurement Input, Price Volatility [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility | 356 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 30, 2021 | Jan. 29, 2021 | Jan. 25, 2021 | Nov. 07, 2017 | Jan. 25, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Class of Stock [Line Items] | ||||||||
Stock conversion price | $ 0.28 | |||||||
Warrants outstanding, weighted-average remaining contractual life | 1 year 1 month 24 days | 1 year 8 months 15 days | ||||||
Warrants outstanding, intrinsic value | $ 0 | $ 0 | ||||||
Warrant [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of common stock related shares | 40,000,000 | |||||||
Mark M Allen [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued | 5,400,000 | |||||||
Unpaid contract wages | $ 30,000 | |||||||
Converted shares of common stock | 333,333 | |||||||
Conversion price | $ 0.09 | |||||||
Secured debt | $ 135,000 | |||||||
Accrued interest | 9,888 | |||||||
Guaranteed return secured loan | $ 135,000 | |||||||
Warrant to purchase of common stock | 5,400,000 | |||||||
Warrant exercise price | $ 0.08 | |||||||
Joel Oppenheim [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued | 316,491 | 316,491 | ||||||
Gain on related party nature of transaction | $ 53,670 | |||||||
Conversion price | $ 0.02 | $ 0.02 | ||||||
Settlement and Mutual Release Agreement [Member] | Paul Deputy [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Description on agreement terms | Paul Deputy was reinstated Interim Chief Financial Officer and signed a Settlement and Mutual Release Agreement. In exchange for releasing the Company for any current, outstanding payroll and/or service-related liability on January 29, 2021, the Company agreed to pay Mr. Deputy $50,000, to be paid in $2,500 monthly increments, starting April 1, 2021. In addition, Mr. Deputy was issued 250,000 shares of Petrolia common stock on January 29, 2021. | |||||||
Officer compensation, per month | $ 50,000 | |||||||
Number of shares to be issued | 250,000 | |||||||
Executive Salary Payable Agreement [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of common stock related shares | 1,992,272 | |||||||
Settlement and Mutual Release Agreement [Member] | Paul Deputy [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares issued price per share | $ 0.033 | |||||||
Gain on related party nature of transaction | $ 134,270 | |||||||
Series A Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, dividend rate | 9% | |||||||
Preferred stock conversion, description | the value of each dollar of preferred stock (based on a $10 per share price) will convert into 7.1429 common shares (which results in a $0.14 per common share conversion rate). | |||||||
Cumulative cash dividends | $ 89,595 | $ 89,568 | ||||||
Series C Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, dividend rate | 8% | |||||||
Preferred stock conversion, description | the value of each dollar of Series C Preferred Stock (based on a $10 per share price) will convert into 100 common shares (which results in a $0.01 per common share conversion rate). | |||||||
Cumulative cash dividends | $ 4,260 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
Jan. 31, 2022 USD ($) | Oct. 31, 2021 CAD ($) | Sep. 30, 2021 CAD ($) | Aug. 31, 2021 CAD ($) | Aug. 21, 2021 USD ($) a | Aug. 21, 2021 CAD ($) a | Mar. 30, 2021 USD ($) $ / shares shares | Mar. 30, 2021 USD ($) $ / shares shares | Jan. 29, 2021 USD ($) $ / shares shares | Jan. 25, 2021 USD ($) $ / shares shares | Nov. 30, 2021 USD ($) shares | Oct. 31, 2021 USD ($) shares | Oct. 25, 2021 USD ($) | Apr. 30, 2021 USD ($) | Jan. 25, 2021 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 CAD ($) | |
Related Party Transaction [Line Items] | ||||||||||||||||||
Share based compensation | $ 54,923 | |||||||||||||||||
Series B Preferred Stock [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Variable interest entity, qualitative or quantitative information, ownership percentage | 60% | |||||||||||||||||
Preferred stock for cash | $ 50,799 | |||||||||||||||||
Leo Womack [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Preferred stock, shares issued | shares | 2,500 | 2,500 | ||||||||||||||||
Preferred stock for cash | $ 25,000 | $ 25,000 | $ 25,000 | |||||||||||||||
Letter Agreement [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Assets consideration | $ 5,150,000 | $ 6,500,000 | ||||||||||||||||
Working interest percentage | 28% | 28% | ||||||||||||||||
Area of land | a | 28,000 | 28,000 | ||||||||||||||||
Non refundable deposits | $ 200,000 | |||||||||||||||||
Assets acquired and liabilities assumed, contingent liability | $ 1,000,000 | $ 2,000,000 | $ 3,300,000 | |||||||||||||||
Other payable | $ 200,000 | |||||||||||||||||
Letter Agreement [Member] | Chief Executive Officer [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Working interest percentage | 50% | 50% | ||||||||||||||||
Joel Oppenheim [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Preferred stock, shares issued | shares | 316,491 | 316,491 | ||||||||||||||||
Share based compensation | $ 60,000 | |||||||||||||||||
Conversion price | $ / shares | $ 0.02 | $ 0.02 | ||||||||||||||||
Related party transaction amount | $ 53,670 | |||||||||||||||||
Zel Khan [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Preferred stock, shares issued | shares | 1,992,272 | |||||||||||||||||
Conversion price | $ / shares | $ 0.025 | $ 0.025 | ||||||||||||||||
Related party transaction amount | $ 275,193 | |||||||||||||||||
Accrued salaries | $ 325,000 | $ 325,000 | ||||||||||||||||
Paul Deputy [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Preferred stock, shares issued | shares | 250,000 | |||||||||||||||||
Conversion price | $ / shares | $ 0.033 | |||||||||||||||||
Related party transaction amount | $ 134,270 | |||||||||||||||||
Accrued salaries | $ 192,520.04 | |||||||||||||||||
Debt periodic payment months | 20 monthly payments | |||||||||||||||||
Debt instrument, periodic payment | $ 2,500 | |||||||||||||||||
Mark M Allen [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Preferred stock, shares issued | shares | 333,333 | |||||||||||||||||
Conversion price | $ / shares | $ 0.09 | $ 0.09 | ||||||||||||||||
Related party transaction amount | $ 19,001 | |||||||||||||||||
Consulting fee | $ 30,000 | |||||||||||||||||
Shares issued price per share | $ / shares | $ 0.033 | $ 0.033 | ||||||||||||||||
Loan payable | $ 135,000 | $ 135,000 | ||||||||||||||||
Accrued interest | 9,888 | 9,888 | ||||||||||||||||
Guaranteed return | $ 135,000 | $ 135,000 | ||||||||||||||||
Class of warrant right shares | shares | 5,400,000 | 5,400,000 | ||||||||||||||||
Warrant exercise price | $ / shares | $ 0.08 | $ 0.08 | ||||||||||||||||
Warrants and rights outstanding | $ 200,378 | $ 200,378 | ||||||||||||||||
Reduction to additional paid in capital | $ 98,690 | |||||||||||||||||
Mark M Allen [Member] | Common Stock [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Preferred stock, shares issued | shares | 5,400,000 |
SCHEDULE OF LONG-LIVED ASSETS (
SCHEDULE OF LONG-LIVED ASSETS (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total long-lived assets | $ 6,203,507 | $ 6,349,183 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,974,250 | $ 2,330,607 | |
Production costs | (2,898,674) | (2,149,632) | |
Depreciation, depletion, amortization, and accretion | (199,096) | (618,148) | |
Results of operations from producing activities | (123,520) | (437,173) | |
Total long-lived assets | 6,203,507 | 6,385,829 | |
Operating Segments [Member] | CANADA | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,968,171 | 2,318,321 | |
Production costs | (2,789,296) | (2,106,632) | |
Depreciation, depletion, amortization, and accretion | (184,124) | (589,631) | |
Results of operations from producing activities | (5,249) | (377,942) | |
Total long-lived assets | 1,960,436 | 2,132,294 | |
Operating Segments [Member] | UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Revenue | 6,079 | 12,286 | |
Production costs | (109,378) | (43,000) | |
Depreciation, depletion, amortization, and accretion | (14,972) | (28,517) | |
Results of operations from producing activities | (118,271) | (59,231) | |
Total long-lived assets | $ 4,243,071 | $ 4,253,535 |
SEGMENT REPORTING (Details Narr
SEGMENT REPORTING (Details Narrative) | 6 Months Ended |
Jun. 30, 2022 Integer | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Mar. 11, 2022 | Feb. 03, 2022 |
Subsequent Events [Abstract] | ||
Debt instrument, face amount | $ 5,000 | $ 150,000 |